Cardano Bridging to Polygon 🤯
$50b USD worth of Cardano will soon be able to be used on Polygon!
MELD is working with a few others to create ADAmatic — a solution for bridging Cardano-based assets to Polygon! 👇
ADAmatic bridge to Polygon
🎥 Check out the video on YouTube 👉 HERE
What does this mean from a user perspective?
Users can now purchase $ADA through Polygon-based DEX’s. This also opens up the opportunity for liquidity providers to make the market and earn trading fees for doing so.
In general, more use cases for $ADA will emerge on Polygon and other chains. Such as borrowing, lending, and other DeFi functionalities.
What did we see in the dApp ecosystems when the two worlds collide?
What cross-chain bridging enables, from a user perspective, is the possibility to utilize other protocols deployed on other blockchains while being able to hold your value in any blockchain-specific based asset. This is mind-blowing for those who want to hold their value in $ADA, for example, but wish to utilize Polygon-based, or Ethereum-based protocols.
Imagine, for example, that you wish to participate with DeFi services (Dex’s, lending, borrowing, etc), but you also want to hold your value in $ADA. This will be live within the next few months!
How will a bridge connecting Cardano’s $50b and Polygon’s $17b market caps mean for investors on a short and long-term basis?
In the short term, this provides utility to users looking to be exposed to $ADA while participating in Polygon-based activities. Such as providing liquidity to a Polygon-based DEX.
There’s only so much value locked within $ADA. And it’s around ~$50b USD at the time of writing. I do wonder… Where will this go? What protocols on Polygon will be able and ready to accept $ADA first? Time will tell!
What is the current user experience for accessing alternative dApps and assets on different chains/layer-2 solutions?
There are a variety of different bridges and layer 2 solutions, and they can perform different functions for the user. See below 👇
Layer 1 ETH to Layer 2 ETH to Layer 1 ETH
Optimism
Arbitrum
BTC to Layer 1 ETH to BTC
RenBridge
The RenBridge protocol is a powerful tool, as it allows any existing BTC holder to utilize DeFi functionalities on the Ethereum blockchain while maintaining their BTC exposure. This will be a similar bridge to that of ADAmatic…
Cardano to Polygon to anything
ADAmatic (coming soon…)
Layer 1 ETH to Polygon to anything
Polygon Bridge
Aggregator from anything to anything
Hop exchange
Technical insights from Vitalik on a multi-chain vs cross-chain future…
https://twitter.com/VitalikButerin/status/1479501366192132099
He does go on to say down below:
“Note that cross-rollup apps within one zone of sovereignty are still fine. Not also that this also is a limit to the “modular blockchains” vision: you can’t just pick and choose a separate data layer and security layer. Your data layer must be your security layer.”
As far as I’m aware, ADAmatic is being created with this in mind.
Conclusion
People will be able to buy and sell the wrapped version of $ADA soon via the ADAmatic bridge.
Thanks for reading :)
- Stu
DeFiKnowledge
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